The table below shows the values of various economic variables of a country during a particular year.

-Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.
A) increase to $367,000
B) increase to $400,000
C) fall to $367,000
D) fall to $400,000

Question

The table below shows the values of various economic variables of a country during a particular year.
 
-Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.
A) increase to $367,000 
B) increase to $400,000 
C) fall to $367,000 
D) fall to $400,000

Quizplus · Accepted Answer

Given that all other variables remain unchanged, an increase in consumption expenditure directly increases GDP by the same amount, indicating a positive correlation between consumption expenditure and GDP.

The Table Below Shows the Values of Various Economic Variables